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Evaluating the current price of the stock

Question:

The growth rate for McDonalds is expected to be 10% for one year. After that, the dividend rate is expected to grow at a rate of 6% indefinitely. McDonald's shareholders require a rate of return on equity equal to 11%. The last dividend the company paid was $2.20. How do I calculate the current price of the stock?

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Finance Basics: Evaluating the current price of the stock

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Finance Basics: Evaluating the current price of the stock

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